In 1841, Raphael Semmes acquired farmland at the head of this bayou. The new homestead was named Prospect Hill. Several of Semmes' colleagues from the Pensacola Navy Yard obtained nearby property and established "a very nice colony of nautical farmers". The inlet became known as Semmes Bayou.

In 1881, the first post office was established with Amos Ross as postmaster. The settlement was then named for Ross' daughter, Josephine.

In 1898, the McPherson family acquired the Semmes property and built the Mexiwana Hotel. Semmes Bayou became McPherson Bayou. The inlet became known as Roberts Bayou after McPherson's death in 1925.(Back):
The Baldwin County Historic Development Commission was petitioned for Historic Site Designation, pursuant to authority conveyed by Act No. 80-497, as amended by Act 89-960, and during their August 11, 2009 regular meeting, the Baldwin County Historic Development Commission approved the designation of Josephine as a Historic Site in Baldwin County Alabama.

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